The new era_of_printing_and_publishing

The New Era of Printing & Publishing On Demand
Charlie Corr
March 23, 2011

Printing & Publishing

2 ©2011 Mimeo.com, Inc. All Rights Reserved.

H a r v a r d U n i v e r s i t y

Office of University Publisher


On Demand Printing & Publishing

Production Workflow Solutions Consulting Service


The Great Recession + The Next Wave
of Technological Change = STRESS


U.S. Printing, Publishing and Related Industries:
Historical and Projected Value of Shipments, 2002-2014

2009-2014 CAGR: FLAT • Dramatic impact of
2008-2009 economic
$450 $430 $441
recession
$419 $425
$408
$397 $394
$391 $389 $390 $392
$400 $386 $389
• Diminished but
positive growth in
$350
forecast years
$300
$ Billions

$250

$200

$150

$100

$50

$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: U.S. Printing and Publishing Market Sizing: 2009-2014, InfoTrends, 2011


U.S. Printing and Publishing Market Forecast 2002-2014
CAGR ‘09 to ‘14

$160

$140

$120

$100
Printing - Flat
$ Billions

$80
Publishing - (6%)

$60

$40

$20

$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: U.S. Printing and Publishing Market Sizing: 2009-2014, InfoTrends, 2011


U.S. Publishing Employment (Excluding Internet)

920
896
900

880

860

840

820
(000's)

800

780

760 755

740

720

700

680
Jan-08 Jan-11

16% Loss


Global Advertising Spending by Medium

50%
2009
41%
39%
40%
2013

30%
23%

20% 18% 18%

12%
10%
10% 8% 8% 7% 7% 7%

1% 1%
0%

Source: ZenithOptimedia

Number of U.S. Commercial Printing Establishments
’09 to ’15 CAGR -10.5%

40,000
# of Establisments

30,000

20,000

10,000

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Source: US Dep’t of Commerce, BLS County Business Patterns

Good News!
» The economy is recovering

» Global literacy is on the rise

» There is increasing demand for content

» Even in declining markets, growth opportunities exist for those who gain
share through innovation & acquisition


Global Retail Value of Production Digital Printing

$150,000

$120,000

CAGR
$90,000
Millions $

B&W - 3%

Color 12%
$60,000
Total 10%

$30,000

$0
2010 2011 2012 2013

Year

Source: InfoTrends


US Digital Color Page Volume Growth (CAGR 2009 to 2014)
Application Family Application

General Office Promotional Publishing

- Business Cards - Brochures - Books
- CAD/Rendering - Catalogs - Greeting Cards
- General Office - Direct Mail - Directories
10% - Presentations 31% - Inserts 31% - Magazines
- Proposals - Coupons - Manuals
- Reports - Posters - Newspapers
- Banners Transactions
- Signage
- Bills
- Statements
Packaging Utility Consumer - Checks
20% - Tickets
- Data-driven
- Folding Cartons - Identity Cards - Fine Art
Reports
- Flexible - Forms - Photo-related
Packaging
20% - Labels 10% 23%
- Prototypes

Source: InfoTrends


Ride Growth Waves
» Web2Print
» Cloud
» Localization/Customization
› ESPN local, Digital Newspapers


Encumbered by Our History
» Printing » Publishing
› Woodblock printing in 200, Printing › Dates to 1580
press in 1454

» Printing is a process for » Publishing is the business or
producing text and images often profession of the commercial
carried out as a manufacturing production and issuance of
process and an essential part of literature, information, music, etc.
publishing

Practices that worked!


Economic Models and Digital Conversion

Hybrid Hybrid
Economic Model Sponsored Sponsored/ Subscriber Paid Subscriber/ Advertiser Paid
Subscriber Advertiser
Traditional
Reports Journal Books Free Newspapers
Newspapers

Representative Products Manuals Reprints Magazine

Research

Economic Driver Cost Cost Revenue Revenue Revenue

Cost to Deliver Low Low High Very High High

Reliance on Physical
Low Medium High Very High High
Distribution

Conversion to View Only Fast Medium Slow Slow Medium


Economic Models
» How do we monetize our efforts?
» What do buyers value?
» What is within our control?

iPad App price $17.29/month

iPad App price Free


Lessons Learned
» Publishing to multiple platforms without new revenue, only reduces
economic viability
› The clear lesson of Electronic Bill Presentment
› 1/3 of US Households lack broadband Internet Access
› 17% of Mobile Device owners have a Smartphone

» Applying known models to new opportunities has a higher chance of success
› Why does the Boston Globe on-line monetize only subscriptions?


Pursue “Super Efficiency” with a Vengeance

» Annual productivity improvements
of about 5%
› A task that takes an hour today
would take 49 minutes in five years Production
and 38 minutes in 10 years Processes

Suppliers Customers

Business
Processes


» Customized Planners for Schools in UK

» Extended geographically to Germany

» Extended product line to include
Yearbooks, Rewards and Praise
Systems and Prospectuses

» Purchased by CLE, a digital PSP


Mimeo
QUALITY
All content
printed as
intended
99.7% Flawless
Delivery

AUTOMATION EASE OF USE
Web Favors Easy enough for
TECHNOLOGY self serve
Centralized
Production Mimeo.com Powerful enough
for Enterprise
In by 10pm PAAS* Inaugural & 2010
Delivered as early Web2Awards
as 8am Winner

CUSTOMER
DELIGHT
NPS Score in the
70’s * PAAS – Printing as a Service
75% Retention


MarketPlace Success
» An Amazon-like Web site to distribute/publish print and related material tied
to Mimeo.com document creation and fulfillment


MarketPlace
» Jonathan Bartlett, The Founder and Product Manager of MarketPlace


What We’ve Discussed…

» Publishing is Down

» Printing is Flat

» Fewer Players Managing More Customers

» The Pace is Quickening

= BIG CHALLENGES


Where Have the Magazines Gone?


You, You, You.


D.I.Y.


The Right Tools


Self-Publishing =

Better…

Faster…

Stronger Cheaper…


The right tools for self-administration


Simple. Fast. Easy.


Accessible and Easily Understandable


No Print Discussion with Order Placers


Print = Revenue Generator


Scribd.


Cloud Platform Printing


Strategies for Achieving MegaGrowth


Strategies for Creating Sustainable Value

» Borrow Brilliance » Innovate
› Emulate top performers › Typically a top down strategy
› Closely & quickly follow your › A willingness to fail
main competitor › Perseverance
› Pay close attention to the market › Understanding value
› Execute flawlessly


Winning Strategies to Create Value
» Put together the best team
› Cost no more than 25% of average
› Top performers exceed the performance of average workers by 300%, if not higher, it
can be 10 times
› Focus on hiring and retaining top performers and quickly get rid of the rest
› Invest in recruiting, mentoring and keeping talent


Winning Strategies to Create Value
» Highest payroll
» Highest valuation of any baseball team
» 27 World Series championships (26%) and 40 American League Pennants
Only one team has won a higher percentage of championships


Good Ideas Will be Funded

“There's plenty of money out there. They print
more every day.”
- George from Charlie and the Chocolate Factory


Charting Your Course
» What is your unique value proposition?
» What is your consolidation play?
› Eat or be eaten
» What is your web/cloud strategy?
» Geographic expansion?
» How do you reduce costs?
» How do you expand product & services?
› What waves do you ride?
» What are your technology investments?

©2011 Mimeo.com, Inc. All Rights Reserved.

THANK YOU!
» Email: charlie@mimeo.com jonathan@mimeo.com
» Tweet: @CharlesCorr

Recommended Reading:
THE PURITAN GIFT, RECLAIMING THE AMERICAN DREAM AMIDST GLOBAL
FINANCIAL CHAOS, by Kenneth Hopper and William Hopper

THE STRATEGY AND TACTICS OF PRICING, by T. Nagle, J. Hogan and J. Zale


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